The New Consumer Financial Protection Bureau

This new bureaucracy is the result of the massive financial overhaul bill passed by the Democrats and signed by President Obama.

Few, if any, of those politicians who voted for the bill read the bill. They just have faith in the goodness of massive government intervention.

How much good will the new bureau do?

The Los Angeles Times interviewed its leader, Elizabeth Warren, who has not been confirmed by the U.S. Senate.

Would this bureau have prevented our housing crisis and its flood of foreclosures?

That is hard to believe as the much more regulated markets of Europe were similarly slammed and disrupted every bit as much as the more free market American economy.

Warren says yes: If this agency had been in place a decade ago, the subprime mortgages that were sold to families across the country and that ultimately cost so many of them their homes would never have been marketed. Without those subprime mortgages fed into the system, the housing bubble would not have inflated with such speed, and an asset securitization market would not have … grown to such gargantuan proportions, built on a fundamentally unstable base.

We might still have had a housing bubble, but it would have been modest and most families would have survived without significant disruption. Too-big-to-fail would not have entered the lexicon, at least not through home mortgages.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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